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Learning From The History Of Outsourcing - History of Outsourcing - The Long History of Outsourcing

Updated on August 22, 2010

Learning From The History Of Outsourcing - History of Outsourcing - The Long History of Outsourcing

Since when did the outsourcing business actually started?

Outsourcing is said to have been around a few thousand years ago and many business owners of the earlier times had already practiced this kind of set-up. People during the ancient times understood the importance of outsourcing as they themselves have realized it is impossible to meet their needs on their own. People with specific skills have started offering their services to other countries in exchange for an equivalent service as well. Thus, outsourcing began.

Outsourcing was already in demand back in the Industrial Revolution in Europe in the 1750 to 1900s due to the high demand in producing goods. Since then many companies have decided that they should outsource their business specific functions such as legal needs, accounting, and insurance to third party companies specializing in the said fields. It was, however, done just within the country since offshore outsourcing was not yet an open idea for them that time.

It was in the middle of the 20th century when some companies worldwide welcomed the idea of offshore outsourcing. Developed countries showed more interest and need in manufacturing at a low cost goods from developing nations. Companies started to be more open to the concept of outsourcing since it helped developing countries increase employment and also their levels of income. Education levels and the skills of workers in developing countries has dramatically improved. Developing countries' governments have started creating competitive infrastructures that is necessary for the company to maximize their profits.

The years have gone by which saw the steady rise of offshore business outsourcing . The IT revolution and computer technology played a key role in the development of outsourcing. Companies started outsourcing their business specific functions to offshore and third party service providers such as human resource, accounting, and data processing. The management of the company’s core activities, however, remained under their care and supervision.

One of the best business trends as of today is offshore outsourcing. Outsourcing has advanced and moved into the world of call centre, information technology, and data transcription ever since the days of manufacturing businesses' needs. Outsourcing is not only helping people find employment, it is also helping companies gain more profit since they are saving a lot from the cost of wages and benefits. Companies now started to outsource their main business functions so as long as it would entail more benefits and profits for the company. Needless to say, outsourcing has really become an essential part of a large organization.


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      wtf? 5 years ago

      That was the dumbest shit I've ever took the time to read.